The mission of QuattroR is to invest in and relaunch Italian businesses with solid market and industrial fundamentals facing temporary financial and economic distress. The Fund aims at strengthening and relaunching these companies by providing adequate financial and managerial resources to overcome these temporary difficulties and to support the development, also through potential build-up processes also internationally.
QuattroR SGR S.p.A. is a management company, controlled by its management. Incorporated in 2016, it manages a fund of over €700m (first closing April 2017). QuattroR targets Italian companies with solid business fundamentals despitetemporary financial distress. Limited Partners of the QuattroR Fund are prominent Italian institutional investors.
QuattroR value creation drivers:
- Recapitalise: provide businesses with the necessary financial resources to achieve operating efficiency and rebalance the capital structure
- Restructure: rebalance the debt structure through restructuring and/or refinancing initiatives
- Reorganise: rethink the company’s operating and business model; review the managerial structure and governance
- Relaunch: support the development and the growth of the investee companies, including the injection of additional financial resources to boost growth also through add on acquisitions
QuattroR has raised significant financial resources fully dedicated to Italian companies and has a flexible investment approach, encompassing the entire spectrum of equity, equity-like and debt instruments.
Complex restructuring procedures
Changes in Applicable Law
Lack of financial resources for growth during restructuring
QuattroR was created to bridge the existing market gap for equity investments in Italian companies with temporary financial difficulties in spite of solid business fundamentals. QuattroR would contribute both financial resources and managerial know-how to restructure and steer the relaunch of the business.
The long lasting economic recession / stagnation has negatively affected the competitive strengths of many Italian companies. Several companies entered into insolvency and bankruptcy procedures contributing to a high stock of non performing loans.
Changes in bankruptcy legislation have facilitated out of court agreements aimed at preserving business continuity. However, the expected recovery plans inherent to such agreements have often failed to materialise due primarily to two reasons: i) limited new financial resources injected in the businesses and ii) lack of governance change and or management strengthening.
On the banking side, regulators are increasing pressure for tighter and more proactive management of non performing loans.
All the above indicates a positive market environment for a private equity player focusing on special situations such as QuattroR.